The good environment charity Good Environment Canada has been hit by the federal government’s new anti-gouging regulations, which are expected to cut its budget by $6 million in 2018.
The organization says it’s already been hit hard by a $15-million cut in 2018 and $4.8-million in 2019, resulting in $12.7-million loss in the third quarter of this year.
The cuts mean Good Environment has already slashed its spending by $12-million this year and another $8-m next year.
Its budget is down by a third of what it was before the regulations came into effect.
“They’re not going to put the money back in unless we can convince them to,” said Michael Lefebvre, executive director of Good Environment.
He said his organization has been trying to recruit new donors in an effort to stem the bleeding.
He expects the cuts to impact a number of its fundraising efforts.
“Our funding will be reduced by $3-million next year, $5-million the year after that, and then a further $6-million by 2019,” he said.
Good Environment is also expecting to lose its charitable status.
“We will have no further grants and it will be a loss to the organization,” said Lefemvre.
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Good Environment had an operating surplus in 2019 that is still growing, thanks to a $2-million investment in a new fundraising office.
That money came from donations made in the first six months of the year, according to its annual report.
The charity also had a significant increase in charitable donations in the months leading up to the federal budget cuts, which the organization attributes to its growing fundraising efforts as well as an overall increase in the number of people volunteering.
Good Environmental Canada is in the middle of a $1.6-billion capital expenditure program.
That program has already been slashed by $1-million.
It is also expected to lose about $5.4-million from 2019-20, the year before the budget cuts take effect.
The government has been asking charities to provide a plan to plan for the impact of the cuts.
A list of charities that are eligible for a tax break can be found on Good Environment’s website.
What are some other charities that might see their spending slashed by the government?
The Canada Revenue Agency says Good Environment can expect to see a significant drop in its annual operating budget.
It says the government is also going to cut the amount of time charities are allowed to spend with staff and volunteers.
Lefefebre said the IRS has asked Good Environment to give more details about the proposed cuts in a letter.
The IRS also said that it expects charities to face significant job losses as a result of the new restrictions.
What charities are in a better spot now than they were two years ago?
Good environment charities can expect a boost from the federal Government’s plan to tax good environment donations to 5 per cent, from 2 per cent now.
That’s lower than the 3 per cent tax on charities that collect funds through a private fundraising system.
Good environmental charities say it’s a welcome change.
“It’s an opportunity to make some money and it’s an avenue to build a foundation to continue to do good things for the environment,” said Andrew Mould, president of Good Environmental.
He also says the IRS can make more money in a single year by taxing charities that accept donations for a specific cause.
“The government has to look at the whole picture.
The fact that it is a good investment for the economy is not enough to justify its taxes,” he added.
What is the impact on charities in other countries?
Canada’s charities are all eligible for the same relief from taxation.
There is no specific exemption for charities in the United States, but the IRS says charities in New Zealand are exempt from the tax, too.
The U.S. government also has a tax on donations to charity.
That tax, however, is very small compared to the $7.50-per-dollar-donation tax the U.K. has.
Canada has no such tax.
In the U, charities can donate up to $15,000 per year to charities of up to 500 people, and donations of up $1,000 must be made in Canada.
Goodenvironment also has an exemption from the U of T’s charitable income tax, which it says allows it to give up to 15 per cent of its annual income to charities.
It’s worth noting that the U and Canada both have a tax system that is similar to that in the U., with charities being taxed on their net income.
What can you do to help charities get through these tough times?
There are a number ways that charities can help.
Donate to Good Environment: Donations can be made to Good Environmental at cheques payable to: